In the Matter of Herold & Lantern Investments, Inc.

Herold & Lantern Investments, Inc. appears to have failed to establish and implement an anti-money laundering (AML) compliance program reasonably designed to detect and cause the reporting of suspicious transactions in low-priced securities. The firm's AML procedures did not provide reasonable guidance regarding how to investigate red flags involving low-priced securities, nor was its AML compliance program reasonably tailored to address the risks posed by low-priced securities. The firm also reportedly did not conduct ongoing or additional due diligence of accounts that regularly transacted in low-priced securities, and its exception reports allegedly failed to include sufficient information to identify potential red flags of suspicious activity. As a result, the firm may have failed to detect and reasonably investigate certain red flags of suspicious transactions.

Summary generated from official Financial Industry Regulatory Authority press release